noun
- payments made in advance for goods or services to be received later
Usage: business; accounting
Examples
- The company requires prepayments for all custom orders.
- Insurance prepayments are recorded as assets on the balance sheet.
- Monthly prepayments help customers budget for their utilities.
- The contractor requested prepayments to cover material costs.
- Prepayments for the conference must be made by Friday.
- The accounting department tracks all customer prepayments carefully.